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Credit Risk Management Module from FRM part 2

Hi guys,

I'm currently working as a Credit Risk Analyst at a bulge bracket bank in London.

The FRM is something that has caught my eye, however I do not have any plans to sit for the exam just yet. Maybe in 2-3 years...

What I wanted to do however is study the Credit Risk Management section from FRM part 2. I just want to do this for my own knowledge and to understand my field better. I know this is quite unusual so I had a few questions about this..

- Is it possible to dive straight into an FRM 2 topic (like Credit Risk) with only knowing the basics of finance? Or does the Credit Risk bit assume you have a lot of knowledge (which the ordinary candidate would have gained studying for Level 1)?

- Is it actually possibly to buy FRM books second hand? I don't want to spend so much just for one book.

- Does this sound like a good idea at all? Or am I being silly? If not the FRM book, are there any other books you would recommend so that I can enhance my knowledge of Credit Risk Management?


Any responses would be much appreciated, thanks very much in advance!

Once again, at this stage I'm really looking to bolster my own knowledge.
 

ShaktiRathore

Well-Known Member
Subscriber
Hi,
As per you said you have a lot of experience in credit risk as a analyst i think the credit risk curriculum of part 2 you can understand. you would be made aware of counter party risk, CVAs, some models as Merton model to assess default which is the centerpiece of assessing credit risk with some readings on credit ratings, analysis and credit valuation e.g. cds, credit link note etc. You will get a lot of material to read and understand with very good readings like dealer banks, swaps used for managing credit risk etc. It will certainly benefit you. You need to have some basic knowledge of mathematics like statistics and little bit of basic algebra(e.g. logarithms etc). You would be able to make it without going through part I readings i think so.
Frm books are available on net itself if you google.
for credit risk the books as suggested by david:
1.The Credit Default Swap Basis:Moorad Choudhry
http://www.amazon.com/gp/product/15...=1789&creative=390957&creativeASIN=1576602362
2.Managing Credit Risk: The Great Challenge for Global Financial Markets (Wiley Finance) by John B. Caouette (Author), Edward I. Altman (Author), Paul Narayanan (Author), Robert Nimmo (Author)
http://www.amazon.com/gp/product/04...=1789&creative=390957&creativeASIN=0470118725
3.Structured Finance and Collateralized Debt Obligations: New Developments in Cash and Synthetic Securitization (Wiley Finance) by Ms. Tavakoli
http://www.amazon.com/Structured-Finance-Collateralized-Debt-Obligations/dp/0470288949/
4. ong
http://www.amazon.com/Credit-Ratings-Methodologies-Rationale-Default/dp/1899332693
thanks
 
Hi,
As per you said you have a lot of experience in credit risk as a analyst i think the credit risk curriculum of part 2 you can understand. you would be made aware of counter party risk, CVAs, some models as Merton model to assess default which is the centerpiece of assessing credit risk with some readings on credit ratings, analysis and credit valuation e.g. cds, credit link note etc. You will get a lot of material to read and understand with very good readings like dealer banks, swaps used for managing credit risk etc. It will certainly benefit you. You need to have some basic knowledge of mathematics like statistics and little bit of basic algebra(e.g. logarithms etc). You would be able to make it without going through part I readings i think so.
Frm books are available on net itself if you google.
for credit risk the books as suggested by david:
1.The Credit Default Swap Basis:Moorad Choudhry
http://www.amazon.com/gp/product/15...=1789&creative=390957&creativeASIN=1576602362
2.Managing Credit Risk: The Great Challenge for Global Financial Markets (Wiley Finance) by John B. Caouette (Author), Edward I. Altman (Author), Paul Narayanan (Author), Robert Nimmo (Author)
http://www.amazon.com/gp/product/04...=1789&creative=390957&creativeASIN=0470118725
3.Structured Finance and Collateralized Debt Obligations: New Developments in Cash and Synthetic Securitization (Wiley Finance) by Ms. Tavakoli
http://www.amazon.com/Structured-Finance-Collateralized-Debt-Obligations/dp/0470288949/
4. ong
http://www.amazon.com/Credit-Ratings-Methodologies-Rationale-Default/dp/1899332693
thanks

Shakti thanks very much for your response. This was really useful.

To be honest, I don't have A LOT of experience. I graduated exactly a year ago from University with a Bachelors degree and started working last October. So I've really just had about 9 months experience.

Could you send me a link for the FRM Credit Risk Management book online? I can't seem to find it anywhere!! That would be really appreciated thanks!!
 
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